Why you need to plan before you die....
Recently, while in Colombia, I went to visit my close friends mother. My friend and his mom treated me like their own family several years ago when I knew no one here... She called me "Mi otro hijo" or "Hijito" = other son or little son.
His grandfather, the moms father, had just passed away. I walked into their home not knowing what to expect. I knew she would be sad and grieving and I'd be there for emotional support until my friend Andrew came home in a few days, but I ended up sitting with his mother, and as she told me what happened in the days after her father’s death, my heart sank.
Here’s what I learned:
- He provided everything and they depended on his pension to survive. Which ends the moment he dies.
- His pension which was paying for everything for the both of them, was going to expire and basically end. Because the laws allow for pensions to pass on to spouses here, but not family members.
- The grandfather died with no life insurance and no will.
- They had no procedures, no plan for what to do when he died.
- All of his money was locked away in a GIA (a fixed interest account) that couldn’t be accessed for a full year. Even in death, she couldn’t touch a penny of it! That locked in clause was serious and still applied past death!
- She had no cash in the house, no savings, no credit card, and nothing written down on where to find money to pay the bills.
- After caring for her father during his final year of life after an accident, she was left with nothing to live on—not even enough money for food.
- The next several weeks would be very stressful for her, as she tries to figure out ways to ensure she can still pay the bills without his pension.
Its sad...
She gave everything of herself to care for him, but was left scrambling when he passed away. After the funeral, which his sons paid for, she had no cash for food. No credit cards or anything. I gave what I had in my pockets until her son, my friend came home in the next few days... $90,000 pesos. Only $30 CAD.
This hurt. Because I know this kind of thing happens far too often all over the world. Families are unprepared. Assets are locked up. Inflation erodes hard earned money & wealth. A lifetime of work and sacrifice disappearing overnight. No one reads the fine print, like what happens to our pensions when we die or if the insurance we have is sufficient. Not being prepared leads to plenty of stresses for the families and people involved.
And here’s the hard truth: it’s not just a problem in Colombia. It happens everywhere. Canada. The U.S. Europe.
However,
That’s why I do what I do. Because preparation matters. Having access to money when things go awry matters. Understanding how to protect your family from stressful situations like this matters. Being prepared for unexpected events hurts you and your loved ones.
The time to plan is now—not after it’s too late.
If you haven’t taken the steps yet to secure your financial future and protect your loved ones, I want to encourage you: start today. Have something like this photo:
One client and friend is above the norm. I noticed she had a "If I Die" box stored and ready to go in her closet - with everything that her family would need for when she passes. Her family knows the location of the box in her closet, and what to do when she dies. Way to go!
That’s exactly what my book and programs are designed to help you do—so you’ll never leave your spouse or children in the position of being financially stranded in the middle of grief. No one should struggle in such ways when a loved one dies... Your family deserves peace of mind.
By the way, my next round of the "How to Become Financially Indestructible" program opens soon. Let me know if you are interested in joining us... The results from the 1st cohort have been awesome!
To your financial indestructibility,
Michael
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